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Hub Group Buys Marten’s Intermodal Unit for $51.8 Million
Hub Group has acquired the intermodal division of Marten Transport for $51.8 million, an investment aimed at significantly expanding its temperature-controlled intermodal fleet. This deal, which is expected to finalize by the end of the third quarter, has the potential to double Hub Group's capacity for refrigerated transportation, a market that has shown resilience even during downturns.
Hub Group, based in Oak Brook, Illinois, is currently ranked as the second-largest intermodal carrier in North America and highlighted that this acquisition will enhance its existing network, allowing them to leverage existing rail contracts and chassis agreements. The intermodal division of Marten Transport, which serves the food and beverage sector, generated $51.5 million in revenue over the past year and operates roughly 1,200 refrigerated containers.
Marten’s leadership sees this acquisition as an opportunity to refocus on their core services and promote organic growth. Deutsche Bank’s analyst Richa Harnain noted that while the financial impact of the acquisition may seem relatively minor, strategically, it positions Hub Group to tap into a growing revenue stream from specialized refrigerated services, with the added benefit of unlocking potential synergies through limited customer overlap.
From a transportation perspective, this acquisition underscores the increasing demand for refrigerated intermodal services, especially as shippers are seeking more efficient logistical solutions for temperature-sensitive products. This move may not only enhance competitiveness in the intermodal market but also illustrates a broader trend of consolidation aimed at building capabilities in niche segments. As temperature-controlled logistics become increasingly crucial in the supply chain, companies like Hub Group that invest in these facilities are likely to see enhanced long-term growth and resilience in their service offerings.
Hub Group, based in Oak Brook, Illinois, is currently ranked as the second-largest intermodal carrier in North America and highlighted that this acquisition will enhance its existing network, allowing them to leverage existing rail contracts and chassis agreements. The intermodal division of Marten Transport, which serves the food and beverage sector, generated $51.5 million in revenue over the past year and operates roughly 1,200 refrigerated containers.
Marten’s leadership sees this acquisition as an opportunity to refocus on their core services and promote organic growth. Deutsche Bank’s analyst Richa Harnain noted that while the financial impact of the acquisition may seem relatively minor, strategically, it positions Hub Group to tap into a growing revenue stream from specialized refrigerated services, with the added benefit of unlocking potential synergies through limited customer overlap.
From a transportation perspective, this acquisition underscores the increasing demand for refrigerated intermodal services, especially as shippers are seeking more efficient logistical solutions for temperature-sensitive products. This move may not only enhance competitiveness in the intermodal market but also illustrates a broader trend of consolidation aimed at building capabilities in niche segments. As temperature-controlled logistics become increasingly crucial in the supply chain, companies like Hub Group that invest in these facilities are likely to see enhanced long-term growth and resilience in their service offerings.
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